GREY:AVGCF - Post by User
Comment by
art27on May 27, 2010 1:48pm
385 Views
Post# 17137026
RE: Upside
RE: UpsideYes I own some CPN too. They have large but low grade deposit in Romania and a deposit under development in Brasil. Together over 10mil oz I think (but recoverable how much ?). They will start production in 2012.
Nice deposits and a cheap SP .35 but no production and no cash flow for now. AVR has established production and cash flow. However, as you can see on AVR's example (Q1) there may be some issues with those startups, financings, and targets sometimes. If I were to buy I would choose a producer with positive cash flow. $650 cash cost for AVR atm is not a tragedy with POG of $1200 but I would worry if POG was $800. Next year if production goes well and no more glitches I think we should come with cash cost of $500 or lower and over 100k oz/a production.
Good luck and take your chance to add here and there. Its cheap right now.
Art27
Ps. Today you are buying below the Canaccord's bought deal price of .60